Hong Kong halts acceptance of license applications for crypto exchanges starting from February 29th, necessitating the closure of non-compliant platforms by May 31st, 2024.
The Securities and Futures Commission (SFC) of Hong Kong has set a deadline for crypto exchanges that have not submitted license applications by February 29th to cease operations in the region by May 31st, 2024.
Furthermore, the SFC advises investors using virtual asset trading platforms to transition to licensed operators or those in the application process.
Currently, only two crypto trading operators, OSL Digital Securities and HashKey Exchange, have been granted licenses, with 22 others having submitted applications. Some platforms withdrew or had their applications returned, while others await the outcome.
During the transition period, Hong Kong will impose restrictions on the operational activities of affected exchanges and cease all marketing efforts in the territory.
The SFC plans to release a list of licensed crypto exchanges by June 1st, 2024, but there is no guarantee of licensing for all mentioned platforms.
Upon receiving licenses, crypto exchanges can offer trading services for Bitcoin, Ether, and other cryptocurrencies, subject to approval by the SFC.
Meanwhile, BitForex, a Hong Kong-based exchange, has faced communication issues and withdrawal suspensions, leading to user complaints and concerns about access to their accounts and assets.